free-money-forex

As most of us know, Forex is foreign exchange market whereby one currency is exchange for another currency. Out of this trading, one will suffer loss or make profits and it can be huge when the amount of the currency traded is larger. Nowadays, a lot of people trade in Forex for several reasons. Usually, the biggest reason is to gain profit but not everybody succeed in doing so. Despite of galore of tutorials regarding Forex scramble across the internet, people still tend to lose money in Forex. Some people even have a few years of experiences in Forex trading, but in the end they still suffer losses. There are 2 major factors contributing to these losses: Lack of knowledge and Greed.

When they first heard of Forex is how to make real money with it, people tend to get excited. They want to put their hand on it although some of them may not even have a single experience in Forex trading. They thought that once they make a decent profit out of virtual account that are made available through most of Forex platform, they can start trade with real money. This is their major mistake. They do not realize that one can gain a little profit by luck but they can't depend on it in the long run. This is what we called lack of knowledge. To start trade, one has to understand how the Forex works including the indicators, the technical analysis as well as the fundamental analysis. However, once they have fully understood, they should not start trading using real money at first. They have to take their time trading with the virtual account. This is a very good hand on experiences which can be used later. Personally, I think the best duration of using this virtual account before jumping into live funds is at least 3 months so that they will get familiar with the platform. This is a very important process as it will help us to trade conveniently later.

After everything is in order, one can start trade using live funds but here comes the second problem: Greed. Greed is already in the human nature to start with but it is up to us to control. With good knowledge in Forex trading, one should be able to control it, however most of the time; it is the other way around. When one first start to trade, they will see the money start to coming in, and during this time, they thought that if they bet bigger amount, profits will be larger. However they tend to forget that with bigger bet, they could win big or lose big. In another situation, sometimes they can see the trade that they opened last night already made some decent nice profit, but they want to go for more, so they wait and wait. To avoid this kind of situation, actually one should set their 'exit target' and 'stop loss' the minute they start to open their trade.

The truth is people definitely can gain a lot of profits from Forex trading if they really understand it and avoid these problems. Even a lot of people nowadays, make living just by trading in Forex.